HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaaycw0001 and id is 1 raw text is:
DOCUMENT RPSUME
07390 - CC2787867]
The Payroll Allotment Program Weeds a Second Look. FGMSD-78-52;
B-141025. September 29, 1978. 18 pp. + 4 appendices (17 pp.).
Report to the Congress; by Robert F. Keller, Acting Comptroller
General.
Issue Area: Accounting and Financial Reporting: Collection of
Amounts Owed (2803).
Contact: Financial and General Management Studies Div.
Budget Function: General Government: Central Fiscal Operations
(803) ; Miscellaneous: Financial Hanagemer-t and Information
Systems (1002); General Government: Cential Personnel
Manaqement (805).
Crganization Concerned: Department of the Trs,%ury; Office of
Manaqement and Budget; Department of Defense.
Congressional Relevance: House Committee on Armed Services;
Senate Committee on Armed Services; Congress.
Authority: User Charge Act of 1952 (31 U.S.C, 483a). (P.L.
87-304; 5 U.S.C. 5525). (P.L. 89-145; 31 U.S.C. 492(b)).
Independent Offices Appropriation Act of 1952 (31 U-S.C.
483a). P.L. 90-365. 37 U.S.C. 701. 37 U.S.C. 708. OMB
Circular L-25. S. Rept. 90-1228. H. Rept. 90-893. Treasxry
Circular 1076.
The Federal Government's voluntary payroll deduction or
allotment program permits military and civilian personnel to
take care of personal and financial responsibilities by
authorizing the Government to withhold money from their pay and
send it directly to designated recipients, including dependents,
charitable organizations, financial institutions, and insurance
companies. Findings/Conclusions: The Government charges
financial institutions for handling the allotments of civilian
employees who work in the United States, but it does ,.ot charge
them for military allotments or for allotments of civilians who
work ovarseas even though the benefits to the institutions are
identical. Under the present system, the Government does n.t
recover from financial institutions the full costs of processing
allotments of civilians, as intended by law, because the rates
are outdated. As a result, the Government does not recover any
portion of the $5.6 million spent annually to process military
and overse4s allotments and recovers only about half of the $2.6
million for allotments of U.S. civ!.lians. There is a basic
disagreement amonq the Office of Minagement and Budget, the
Department of Defense, and the Department of the Treasury on the
need to charge fiuancial institutions :,)r the adr.Inistrative
costs of handling payroll allotments for military personnel and
overseas civilians. Recommendations: The Congress should
consider whether the allotment program, as presently
administered, is meeting its expectations and could consider the
following options ahen decidinq what, if any, changes need to be
made: drop the existing charges for civilian allotments, charge](ViewImageLocal?handle=hein.gao/gaobaaycw0001&div=1&collection=&method=preview&ext=.png&size=3)